Category: Economics & Investing

Frequent contributor KAF sent this: Fed says $600B bond program to end in June. JWR’s Comment: Any bets on whether The Fed can break itself from their new-found addiction to creating money out of thin air? I’m betting that they’ll find an excuse to continue Monetization (aka “Quantitative Easing”), indefinitely. In essence, monetization is the crack cocaine cooking of the currency world. B.T.D. sent this: Treasury quietly plans for failure to raise debt ceiling, Regular content contributor B.B. forwarded this: Wal-Mart: Our shoppers are ‘running out of money’ Several readers sent the link to this entertaining “rap music video”: Fight …

Central banks pump £3 trillion into world economy. Reader J.D.D. suggested this by Rick Ackerman: Finally, a Hyperinflation Argument That Persuades CNBC reports: Killer Combo of High Gas, Food Prices at Key Tipping Point. (Thanks to C.D.V. for the link.) C.D.V. also sent: McDonald’s warns of higher food inflation Want to compare the declining purchasing power of the Dollar, all the way back to 1904? See The Inflation Calculator G.G. flagged this: Whoa Baby, Prices Are Jumping for Diapers, Other Family Basics

Some new commentary on the US Dollar Index by Toby Connor: Bernanke Bottom or Crash! Should You Buy A Home In 2011? Check Out These 29 Absolutely Crazy Statistics About The Housing Crisis J. in Galt’s Gulch recommended this over at Seeking Alpha: The Economic Collapse Cycle – Where We Are Now and How to Invest Accordingly Items from The Economatrix: Adventures in Silver and Gold, Part 1 Ampex Starts Reverse Inquiry:  Seeks to Buy “Any Quantity” of Silver From Clients at $3 Over Spot Oil Slips as Dollar Gains, Gasoline Up For 34th Straight Day Is Gold Rising Because …

Jonathan H. suggested a piece over at Slate: The Great Global Freakout of 2011 Imagining the worst-case scenario if the United States even comes close to defaulting on its debt. Loyal content contributor B.B. sent an article by James West of The Midas Letter: $5,000 Gold and $300 Silver are Credible Numbers Bob Chapman of The International Forecaster outlined the current short squeeze in the silver market in a radio interview with Alex Jones. To summarize Chapman’s remarks: Gold is going to break out here and is going to go to $1,600, $1,650, silver is another situation, the unusual situation …

Robert R. wrote to recommend an interview with Bob Chapman of The International Forecaster wherein he lays out “details on where gold and silver is going and explains the shorts by the big banks, market crashes and dollar defaults, and warns to buy plenty of freeze dried foods, battle rifles, thousands of rounds of ammo, and plenty of spare magazines.” Price of gold means panning supplies and metal detectors are flying off shelves. (Thanks to F.G. for the link.) C.D.V. was the first of several readers to send a link to an article that was also featured on The Drudge …

Michael Pollaro writes in Forbes: US government’s fiscal plight, the numbers say it all J.B.G. sent this from The Telegraph: Gold price could rise to $1,700 an ounce More housing market doom: Distressed Properties Claim 40% of Existing-Home Sales. (Thanks to SurvivalBlog’s Poet Laureate G.G. for the link.) Loyal content contributor F.G. sent this: A Frightening Satellite Tour Of America’s Foreclosure Wastelands Doug C. recommended: Survivalist Ahead of Silver and Gold Items from The Economatrix: Government Cash Handouts Now Top Tax Revenues Obama Warns Spending Cuts Could Trigger Second Recession. “Laissez Les Bon Temps Roulez!“ US Home Foreclosures Soar to …

Eric Sprott: “Expect The Gold To Silver Ratio To Hit Single Digits”. JWR’s Comment: This reinforces my prediction of the continuing gold/silver ratio slide. If you have the secure storage space available, then it is high time to ratio trade out of gold and into silver. Reader Sue C. sent this: Obama Officials Tried to Convince S&P Not to Issue Credit Warning C.D.V. sent this: Americans Shun Cheapest Homes in 40 Years as Owning Loses Appeal My brother-in-law wrote to mention that I had missed mentioning this: Historic Budget Cuts… Of One Percent? F.G. sent this from The Wall Street …

John R. sent a link to some great analysis by Rob Kirby: Amaranth Kill Shot: Collateral Damage in a 78 Trillion Dollar Derivatives Book Compliments of J.P. Morgan Chase Also from John, a piece by Claus Vogt: Two Collapse Scenarios Michael P. suggested the latest ShadowStats report: Hyperinflation – 2011 (Updated) Scott M. recommended this segment wherein Neal Cavuto interviews Former Treasury Chief Restructuring Officer Jim Millstein: Debt Ceilings and the Risk of U.S. Default Hedge fund assets top $2 trillion for the first time. (Thanks to Mark W. for the link.) Items from The Economatrix: Oil Settles Above $111 …

At The Daily Bell: Dollar Replacement Beat Goes On … and On Downgrading of U.S. Credit Rating Just Tip of the Iceberg John R. suggested this: Debts Just Don’t Disappear Also from John, some commentary by Gordon T. Long: Bernanke’s QEx Box Meredith sent this: It’s Official: China Will Be Dumping US Dollars Items from The Economatrix: Unemployment Falls in Two-Thirds of US States New Home Construction Increases 7.2% in March Fears of Greek Debt Default Hit Markets Investors Drove Home Sales Up 3.7% in March. (Yes, but for a reality check, look at this price chart.)

J.D.D. flagged this: That’s pricey: 13 items that cost more, or will Latest global food price figures. India food inflation eases slightly. (Now down to 9.18% , annually.) 11 Prices That Will Rise Along With Your Gas. Which Would you Steal, Cash or Groceries? (Thanks to Scott M. for the link.)

I’m sure you’ve noticed that US Dollar Index is down to 74.4, spot gold is up to $1,507 per ounce, and spot silver is at $45.89. As I’ve been warning you since September of 2005: Get out of U.S. Dollars and into useful tangibles! If you feel that you’ve missed the boat on precious metals, then buy guns and common caliber ammunition while they are still affordable. I suspect that they won’t be affordable (in U.S. Dollar terms) in a couple of years. Also, be forewarned: The COMEX Governors are soon likely to slam on the brakes on the precious …

The convenient fiction that the U.S. is worthy of a “AAA” credit rating continues: S&P Cuts U.S. Ratings Outlook to Negative. How long can Uncle Sam dog-paddle in a sea of red ink? (Thanks to M.E.W. and several other readers for the link.) Deborah B. sent this: U.S. Taxpayers on the Hook for Portugal Bailout Items from The Economatrix: Builder Outlook Falls Ahead of Spring Season Poll:  US Economy Improving Despite Global Events. (If they sprinkle around enough hundreds of billions in quantitative easing funny money, it has to have some impact on the economy…) temporarily.) Morgan Stanley Defaulted On …

AmEx (American Ex-Pat): suggested this: Case Shiller 100 Year Chart (2011 Update). JWR’s Comment: Methinks house prices still have a lot farther to fall. Unless you find that “perfect” retreat property, don’t buy into a falling market! Carl T. sent this: Losing 84 Cents on Dollar Reveals Runaway U.S. Public Pensions John B. suggested: The Real Silver High China trims holdings of US securities in February. Sometimes it is these “minor” news articles that speak volumes. (Thanks to G.G. for the link.) G.P. recommended this piece at the NIA web site: The Truth About Silver and Inflation Items from The …